TIGTA: IRS Mishandles 27% of Innocent Spouse Cases
The Treasury Inspector General for Tax Administration has released The Process to Separate Joint Tax Accounts for Innocent Spouse Cases Has Been Improved; However, Additional Actions Are Needed (2007-40-053) (3/9/07):
IRS employees did not ensure proper actions were taken or taken timely in 27% of the taxpayer accounts reviewed. The IRS did not always take action or take timely action to:
- Suspend collection activity against the taxpayer requesting Innocent Spouse relief
- Resume collection activity for the nonrequesting spouse
- Prevent refunds from being issued to the nonrequesting spouse
- Allow refunds to be issued to the nonrequesting spouse once the tax liability had been fully paid ...
As a result, some taxpayers requesting Innocent Spouse relief may not have been protected from enforced collection actions, and the Federal Government’s interests may not have been protected.